As I’m sure we’re all aware of, around 2 months ago the United Kingdom voted to withdraw from the EU. Generally speaking, this was a big move for the UK- and with that move came global ramifications pertaining not only to the politics or the economy of the EU, but also in the field of biotechnology.
Following Brexit, there was a major plummet in the biotech market, as uncertain investors started pulling away from the UK market. Celgene and Regeneron lost over 4% during the will-they won’t-they atmosphere that surrounded the UK this summer, and Gilead dropped to a two-year low. Right after it was announced that the UK would withdraw from the EU, the iShares NASDAQ Biotechnology Index fell 3%.
Many have attributed this phenomenon to the uncertainty surrounding the new regulations that the UK will place on its biotechnology sector, as well as the fact that it will lose significant funding for biotech research from the rest of Europe.